Super Retail Group to acquire Macpac for $107m

Australian retailing company Super Retail Group has agreed to acquire New Zealand-based outdoor equipment brand MacPac for A$135m ($107m).

Founded in 1973, Macpac started selling hiking packs in Christchurch. It started retail operations in 2008. It is a vertically integrated retailer, which has 54 stores across Australia and New Zealand, and sells own branded apparel, equipment and accessories.

Upon completion of the acquisition, Super Retail Group intends to consolidate the Rays and Macpac businesses under the Macpac brand.

Super Retail Group managing director and CEO Peter Birtles said: “The integration of the business with Rays provides an opportunity to position Macpac as the leading outdoor adventure specialist across Australia and New Zealand providing a much broader range of quality products, information and services than any other retail business.”

The combined business will include small format stores focusing on apparel with limited footwear, equipment and accessories. The company plans to have predominantly Macpac’s branded products.

The business will include large format stores with a wide range of apparel, footwear, equipment and accessories under the Macpac brand and major global brands.

It will also introduce a digital channel offering the complete range, extensive information and access to services, along with a commercial channel.

The new business will be led by Macpac managing director Alex Brandon. He will report to Super Retail Group’s leisure retailing division managing director Anthony Heraghty.

The integration cost of Macpac and Rays will amount to about A$13m ($10.2m) over the next two years.

Super Retail plans to finance the deal with its existing debt facilities. The acquisition is expected to be completed by the end of March 2018.

Birtles added: “Super Retail Group will be able to leverage its capabilities in supply chain, marketing, procurement and retail operations to add value to Macpac, while Macpac’s capabilities in design and apparel sourcing will add value to BCF and Rebel.”